Libra, 2 Weeks In

Re:Libra, 2 Weeks In by diab0lic on Monday July 08, 2019 @08:52PM (#20388092)

Genuinely curious: Does the lightning network provide all of the same guarantees that the standard Bitcoin network provides? What are the downsides? Why isn't the lightning network used all the time instead of the Bitcoin protocol?

[ Parent | on HN ]

Re:Libra, 2 Weeks In by iso-8859-1 on Monday July 08, 2019 @09:27PM (#20388248)

The downside is that there is no market for watchtowers yet (so you need be online while having channels open).

Another disadvantage is that if you control your key, you must be online. Like, if you run an HTTP server, you must have a machine. With plain Bitcoin you can spend to a pubkey and it doesn't have to be online

[ Parent | on HN ]

Re:Libra, 2 Weeks In by spookthesunset on Monday July 08, 2019 @09:52PM (#20388372)

Having to be online to be secure is a pretty big hole, don’t you think? Sure you could outsource it to some trusted party, but that feels awfully bank-like and I thought bitcoin was all about being your own bank. Am I wrong?

[ Parent | on HN ]

Re:Libra, 2 Weeks In by goristerHAN on Tuesday July 09, 2019 @12:27AM (#20389028)

Watchtowers are not trusted parties and you do not have to be always online to be secure. There is a configurable period where you can broadcast a revocation transaction. Watchtowers can do it for you but it's designed so they cannot frame you. The penalty for broadcasting an out of date transaction is loss of all funds in the channel.

To summarize.

1. Attacks are extremely unlikely in the first place.

2. Watchtowers can prevent them if they do happen.

3. Watchtowers are trustless. They in no way resemble banks.

4. Without a watchtower you are not required to be always online to be secure.

[ Parent | on HN ]

Re:Libra, 2 Weeks In by iso-8859-1 on Thursday July 11, 2019 @07:19PM (#20416781)

If I am not online and don't use a watch tower, how is the breach remedy transaction published in time?

[ Parent | on HN ]

Re:Libra, 2 Weeks In by ambicapter on Monday July 08, 2019 @11:22PM (#20388756)

How does the transaction appear on the blockchain if you're not online?

[ Parent | on HN ]

Re:Libra, 2 Weeks In by iso-8859-1 on Wednesday July 10, 2019 @09:58PM (#20408501)

If you are not online, you can't receive or send at all (this is why I said "Another disadvantage")

The channel state appears on the blockchain once either party closes the channel.

[ Parent | on HN ]

Re:Libra, 2 Weeks In by politician on Monday July 08, 2019 @09:08PM (#20388170)

Lightning is new, so that's part of the adoption story. It suffers from a centralization risk similar to banks (viz a viz using a well-connected intermediary via a wide channel to transmit to arbitrary addresses off chain with less pain that establishing a dedicated channel directly).

[ Parent | on HN ]

Re:Libra, 2 Weeks In by kbaker on Monday July 08, 2019 @09:33PM (#20388276)

It requires some additional investment on the user's part.

Think of it like opening a secured credit card with cash. Faster and more convenient to use, since you can now use the credit card networks instead of the cash, but requires tying up the funds you want to use to pay with.

Also, the merchant/recipient has to be able to accept the payments, and the software is new / in beta still.

[ Parent | on HN ]